SPY/QQQ Plan Your Trade For 8-27: Close-1 GAP Trend Pattern

Today's pattern suggests the GAP Trend portion reflects whether today's open is above or below yesterday's close.

If today's open is above yesterday's close, then I would expect a higher opening GAP leading to a fairly strong rally phase today.

If today's open is below yesterday's close, then I would expect a lower opening GAP leading to a fairly strong selling phase today.

These types of patterns do not often reflect a reversal bar - although reversals can happen.

Overall, I believe the bias is still to the upside. But I also believe price is consolidating in early trading this week and needs to continue to consolidate before attempting to rally again later this week (Thursday/Friday maybe).

So, I would not be surprised to see price stall out a bit today.

Let's see what happens. We may see a bit of a rally or sell-off depending on where today's opening price is and if we see any substantial Opening GAP. The bigger the GAP, the more likely we are going to see price trend.

Get some.

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